April 26 (Bloomberg) -- The naira retreated against the
dollar after Central Bank of Nigeria Governor Lamido Sanusi said
an increase in March inflation was within estimates, adding to
speculation that rates will be kept on hold.

The currency of Africa’s biggest oil producer fell 0.2
percent to 157.405 per dollar on the interbank market as of
11:53 a.m. in Lagos, the commercial capital. The naira has
gained 3.1 percent against the dollar this year, according to
data compiled by Bloomberg.

Inflation accelerated to 12.1 percent in March as food
prices increased, the National Bureau of Statistics said
yesterday. Sanusi said the March inflation data were in line
with the bank’s estimate, with the bank still expecting a peak
of 14.5 percent in the third quarter and a gradual slowdown to
below 10 percent by the end of 2013. The central bank raised its
policy rate by 6 percentage points to a record 12 percent since
2010 to curb price pressures.

“We retain our view that policy rates will remain on hold
at 12 percent for at least the next several months,” CSL
Stockbroker Ltd. analysts, including London-based Alan Cameron,
wrote in a research report today.

Yields on Nigeria’s $500 million of 2021 notes fell for a
third day, declining three basis points to 5.43 percent.
Borrowing costs on 10.75 percent notes due 2014 fell eight basis
points to 14.91 percent, according to April 25 data compiled on
the Financial Markets Dealers Association website.

Ghana’s cedi fell 0.1 percent to 1.855 per dollar in Accra,
the capital, extending its 12 percent decline this year.